A global “risk on” tone resuming aiming USDCAD and USDJPY higher

Ongoing recovery gains across the major European and Asian equity averages, alongside positive consolidation activity by US equity indices sustains a “risk on” them for global asset classes.

For Forex markets, this “risk on” activity has been hallmarked by US Dollar strength.

USDJPY produced an intermediate-term bullish shift above 107.90 in April and aims still higher into May.

The USDCAD push through key 1.2819 in April neutralised the intermediate-term bear trend for a range theme (1.2944 to 1.2536), with the threat skewed for a bullish shift.

USDJPY Bull bias resuming

Another significant selloff on Friday as we had expected (and as also seen Thursday) through 108.96 support, but then a strong rebound from the up trend line from late March and from above our key 108.52 level (or a bullish Hammer candlestick), to shift risk back higher Monday.

The latter April push above 107.90 set an intermediate-term bull trend, BUT below 108.52 would neutralise this bull theme.

For Today:

We see an upside bias for 109.33, then 109.75, maybe 110.00/04.

But below 108.73 aims back for key 108.52; break here aims for 108.10.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 110.48.

Higher targets would be 111.48 and maybe 113.75.

What Changes This? Below 108.52 shifts the outlook back to neutral; through 106.59 is needed for a bear theme.

Resistance and Support:

109.33

109.75*

110.00/04*

110.29*

110.48**

108.73*

108.52***

108.10

107.52

106.85

4 Hour USDJPY Chart

USDCAD Upside risks

Another resilient, but erratic consolidation Friday (as seen from latter April), prodding above the 1.2915 peak, and despite a setback, again holding above the 1.2800/2793 support area, keeping risks higher Monday.

The latter April push through key 1.2819 neutralised the intermediate-term bear trend and set an intermediate-term range theme (seen as 1.2944 to 1.2536, with risks skewed for a bull shift).

For Today:

We see an upside bias for 1.2917; break here aims for key 1.2944, then 1.2971.

But below 2897/2900 (which we would look to try to again hold), sees risks to 1.2741.

Intermediate-term Range Breakout Parameters: Range seen as 1.2944 to 1.2536.

Learn Forex Trading

Other Links

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, or any kind of trading you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. ForexFraud.com is an affiliate partner with various brokers and may be compensated for referred Traders. All reviews remain unbiased and objective and immediate action will be taken against any broker which is found to be in breach of regulation. These partnerships have proven to be great aids in the furthering communication between brokers and our visitors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. Only the NFA regulated brokers featured on this site are available to U.S. customers. Read our full legal disclaimer.

If you like this discussion on ForexFraud.com then please like us on Facebook

We use cookies to enhance your visit on our website. If you continue to use the website, we assume that you agree to the use of cookies. Find out more about cookies and how you can decide you cookie settings by reading our privacy and cookie policy. AcceptRejectRead More